Pension Scheme Guide
Pension Scheme Guide
Global Bank operates a Defined Contribution (DC) pension scheme to help employees save for retirement. The scheme is administered by Legal & General and offers competitive employer matching contributions. All eligible employees are automatically enrolled upon joining the bank.
Auto-Enrolment
In accordance with pension regulations, all employees aged between 22 and State Pension age, earning above the auto-enrolment threshold, are automatically enrolled into the Global Bank Pension Scheme on their start date. Employees who do not meet the auto-enrolment criteria may opt in voluntarily by contacting the Payroll Team.
Contribution Rates
The scheme operates a tiered matching structure. The more you contribute, the more the bank contributes:
| Employee Contribution | Employer Contribution | Total Contribution |
|---|---|---|
| 3% (default) | 6% | 9% |
| 4% | 7% | 11% |
| 5% | 8% | 13% |
| 6% | 9% | 15% |
| 7% or more | 10% (maximum) | 17%+ |
Contributions are calculated as a percentage of pensionable salary (basic salary excluding bonuses, overtime, and allowances). Employee contributions are deducted from gross salary via salary sacrifice, providing National Insurance savings for both the employee and the bank.
Changing Your Contribution Rate
You may change your contribution rate at any time by logging into Workday and navigating to Benefits > Pension > Change Contribution Rate. Changes take effect from the first day of the month following your request, provided the change is submitted before the payroll cut-off (15th of the month).
Investment Options
The scheme offers a range of investment funds managed by Legal & General:
- Default Fund (Lifestyle Strategy): A target-date fund that automatically adjusts the investment mix as you approach retirement, moving from higher-growth assets to lower-risk assets. This is the default option for all new members.
- Global Equity Fund: 100% invested in global equities for higher growth potential (higher risk).
- Bond Fund: Invested primarily in UK government and corporate bonds (lower risk).
- Ethical/ESG Fund: Invests in companies meeting environmental, social, and governance criteria.
- Cash Fund: Invested in money market instruments (lowest risk, lowest expected return).
- Self-Select: Build your own portfolio by allocating percentages across the available funds.
To change your investment options, log in to the Legal & General member portal at member.legalandgeneral.com using your scheme membership number (available on your Workday Benefits page).
Accessing Your Pension Information
- Workday: View your current contribution rate and employer contributions under Benefits > Pension.
- Legal & General Portal: View your fund value, investment performance, transaction history, and retirement projections.
- Annual Benefit Statement: Issued by Legal & General each April, summarising your fund value and projected retirement income.
Opting Out
Employees may opt out of the pension scheme at any time by completing the opt-out form on the Legal & General portal. If you opt out within the first month of enrolment, any contributions already deducted will be refunded. Please note that opting out means forfeiting the employer contribution, which is a significant part of your total remuneration.
Employees who opt out will be automatically re-enrolled every three years in accordance with pension legislation.
At Retirement
When you approach retirement, you will have several options for accessing your pension savings, including:
- Purchasing an annuity (guaranteed income for life).
- Flexible drawdown (withdrawing funds as needed).
- Taking up to 25% of your fund as a tax-free lump sum.
Global Bank provides access to free financial guidance through the MoneyHelper service and can arrange access to independent financial advisers at preferential rates.
For pension queries, contact the Payroll Team at payroll@globalbank.com or extension 4430, or Legal & General directly on 0345 070 8686.